‘Reprivatise DisCos, improve energy mix’ — Agora Policy proffers solutions to power sector challenges

Agora Policy, an Abuja-based think tank, has recommended ways the new government can address issues affecting Nigeria’s energy sector.

Agora Policy, in its policy note “Sustainable Energy Initiatives in Nigeria,” emphasizes the importance of an adequate and reliable power supply for individual well-being, economic growth and the development of the nation as a whole. said not too much.

The group said many efforts and reforms aimed at building the best energy sector for the country had failed.

Agora Policy, citing World Bank data, said Nigeria had the largest energy access gap in the world.

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The group said 85 million Nigerians, or 43 percent of the Nigerian population, lack access to the grid.

While acknowledging the efforts made by the government to date, the Agora Policy notes that “the modest progress made in the energy sector since 1999 has not kept pace with population growth and reduced energy demand necessary to achieve economic viability.” It’s not enough to fill the gap,” he said.. ”. ”

The group recommended the policy to the new government, saying it needed to stop thinking about installed capacity and start thinking about electricity supply.

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“This is policy thinking that will transform the prioritization and allocation of public and private resources to projects, interventions and initiatives across the electricity value chain that improve energy production, affordability and reliability, which will benefit governments. A key paradigm shift affecting “the quality of supply, namely electricity,” Agora Polisi said.

Other policy proposals include the continuation of the Buhari administration’s program in the energy sector. Develop a new national power policy framework and amend the Power Sector Reform Act (EPSRA). and set the position

The failed DisCos in administration should be broken into smaller franchise areas preferably along state boundaries, and privatised as new entities.

“Lastly, there is the “unspoken” issue of the payment of the huge market debts in the sector. For instance, GenCos claim that they are owed over $1 billion by the NBET. It is unclear how the new government would address the payment of these debts.

“There is a temptation to delve into more tactical issues and challenges in the power sector such as resolving the metering gap, estimated billing, resolution of financial distress in the power sector and other operational issues affecting the electricity industry.

“Putting together the tactical plan to resolve the issues should be left with the power sector team to be assembled by the incoming administration.”